IT stocks today: The Nifty IT index surged as much as 3.3% to 33,138.6 on Friday, October 23, as buying interest returned to information technology stocks amid a strong recovery in the sector following encouraging September-quarter earnings. In contrast, benchmark indices remained largely unchanged, rising just 0.05% each.
The IT index has staged a sharp comeback after months of pressure, gaining 17% in October alone following an 11% decline in September. It has advanced 15% over the past month, 14% in three months and 8% in six months. Despite the recovery, the index remains down 10% over the past year. It has, however, recovered around 29% from its July low of 25,699.10 .
Tata Consultancy Services (TCS) led Friday's gains, rising around 3%, while Infosys, HCL Technologies and Wipro advanced approximately 2% each. Among mid-cap IT stocks, Coforge, Persistent Systems and Mphasis gained nearly 1% apiece. Tech Mahindra, L&T Technology Services and Mastek (MTL) bucked the broader trend and traded in the red.
The rally comes after a global selloff in software stocks earlier this year, when concerns mounted that artificial intelligence could disrupt traditional IT services business models. Slowing revenue growth, geopolitical uncertainty and increasing pressure from clients seeking lower prices had also weighed on investor sentiment.
The September-quarter earnings season has helped restore confidence in the sector's near-term growth prospects. Better-than-expected performances from several major IT companies have eased concerns about demand weakness and the potential disruption from AI.